Palm oil futures traded above RM2,800 per tonne and were up about 30% from May’s one-year low on the back of lower than expected production and tightening supply along with strong demand from India and China. Malaysia’s FGV Holdings Bhd, the world’s largest producer of crude palm oil, said production in 4Q FY2020 will be impacted by weather uncertainties and partial lockdown in Sabah. At the same time, the Malaysian Palm Oil Association said Malaysia could lose almost 25% of its output due to a labour shortage, leaving further room for upside momentum. Still, Indian edible oil refiners are trimming imports of palm oil in November and December to make space for soyoil as a recent rally in the price of palm reduced the spread between the two oils.
Historically, Palm Oil reached an all time high of 4298 in March of 2008. Palm Oil - data, forecasts, historical chart - was last updated on November of 2020.
Palm Oil is expected to trade at 2638.87 MYR/MT by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 2266.88 in 12 months time.